BILL ANALYSIS SENATE TRANSPORTATION COMMITTEE BILL NO.:........AB 3148 Senator Quentin L. Kopp, Chairman AUTHOR:.............KATZ VERSION: (Orig.): (As Amend.):..06/13/94 FISCAL:..............YES SUBJECT: Drivers licenses: vehicle forfeiture. DESCRIPTION: This bill would require the impoundment of a vehicle operated by ša driver with a suspended or revoked driver's license or who is šunlicensed, and would subject the vehicle to forfeiture if the šdriver cannot provide satisfactory proof of licensure in a šprescribed manner. The bill would establish extensive šprocedures, conditions and enforcement responsibilities related što the impoundment and forfeiture provisions. ANALYSIS: Existing law prohibits a person from operating a motor vehicle if šthe person's driver's license has been suspended or revoked for šspecified causes, and that person has knowledge of the suspension šor revocation. The person is presumed to have knowledge of the šsuspension or revocation if the Department of Motor Vehicles has šgiven notice to the person. Existing law makes it unlawful for a person whose driving šprivilege has been suspended or revoked to accumulate a driving šrecord history, as defined, which results from driving during a šperiod of suspension or revocation which in turn resulted from a šconviction of specified offenses. Existing law authorizes vehicles to be impounded if a peace šofficer determines that a driver is not properly licensed and šauthorizes permanent impoundment of vehicles owned by persons who šare repeat offenders in the solicitation of prostitution in šcertain counties. The law authorizes a court to order the štemporary impoundment of vehicles for a period between six and 12 šmonths, if a person is convicted of specified offenses, such as šunlicensed driving, reckless driving and drunk driving. Existing law authorizes the forfeiture of a vehicle owned by a šperson convicted of vehicular manslaughter or repeat drunk šdriving offenses and the sale of such vehicle after forfeiture. This bill would enact the Safe Streets Act of 1994. šSpecifically, it: 1. Provides that when a vehicle is stopped by a peace officer šfor a traffic violation, and the driver is unable to produce a švalid license, the vehicle will be impounded. However, if the špeace officer is able to verify that the driver is properly šlicensed but does not have the license in possession, the vehicle š will not be impounded. Peace officers may exercise discretion šand not impound employer-owned vehicles driven by employees in the course of employment if the vehicle can be returned to the šemployer; this same exception applies to other similar šsituations, including a vehicle's relinquishment for servicing or šparking purposes. 2. Prohibits peace officers from stopping a vehicle for the sole šreason of determining whether the driver is properly licensed. The bill prohibits a vehicle owner from knowingly allowing šanother person to drive the owner's vehicle unless he or she šdetermines that the driver possesses a valid driver's license. 3. Authorizes vehicles to be redeemed within 72 hours (three šworking days) of impoundment if the person who was the driver at šthe time of impoundment is able to present a valid driver's šlicense to the impounding police agency. In these cases, the šimpounded vehicle will be released upon payment of any towing and šstorage charges if the vehicle registration is current. The bill provides that in the case of an unlicensed driver who is šnot the owner of the vehicle, the vehicle will be released to the šowner after 14 days of impoundment following the first šoccurrence, provided that the owner signs a stipulated agreement šallowing the vehicle to be automatically forfeited if the vehicle šis again driven by an unlicensed driver. The bill allows vehicle owners to request a post-storage hearing šconducted by the impounding agency to determine the validity of šthe impoundment and requires the impounding agency to pay towing šand storage fees in the event a vehicle was improperly impounded. 4. Provides that vehicles not redeemed within 72 hours after šimpoundment are subject to civil forfeiture, regardless of šownership, according to the following process: a) Within five days of impoundment, the impounding agency šobtains from th DMV the names and addresses of all legal and šregistered owners of the impounded vehicle and transmits that šinformation to the district attorney. b) Within 10 days of impoundment, the district attorney šnotifies all owners of record of the proposed forfeiture by šcertified mail, return receipt requested. The notice includes šinstructions for filing a claim and obtaining a court hearing šand all applicable time limits. c) Within 15 days of mailing the notice, if no claim is špresented by an owner, the district attorney prepares a šwritten declaration of forfeiture and the impounding agency šmay sell the forfeited vehicle. d) If a claim is presented by an owner, a court hearing is šheld to determine the validity of the forfeiture. The hearing š AB 3148 (KATZ) Page 3 ________________________________________________________________ is conducted as any other civil matter, but the burden of šproof is on the prosecuting agency. The court either orders šthe vehicle released or forfeited. A forfeiture judgment does not require conviction of the offense which made the vehicle šsubject to forfeiture. e) Once a vehicle has been forfeited, it is sold. A legal šowner who conducts repossession sales may conduct the sale or šthe sale is via a public auction. Vehicles may be destroyed šor donated to a charitable institution if they are low value šor not salable. 5. Requires proceeds from a sale to be used to satisfy costs in šthe following priority: towing and storage costs, governmental šand judicial costs, indebtedness owed to legal owners as of the šdate of sale, and amounts owed to verified subordinate šlienholders and community property interests of a person other šthan a registered owner. Any remaining proceeds are divided šbetween the state and the affected local agency. The state's potential proceeds are deposited in the Vehicle šInspection and Repair Fund to provide funding for the low income šsmog repair assistance and buyback program created by SB 198 š(Kopp - Statutes of 1994). Local agencies are authorized to use ša portion of their potential proceeds for a reward fund leading što the arrest and conviction of hit and run drivers. 6. Provides that a vehicle that is reported as stolen is exempt šfrom the forfeiture provisions and may be claimed at any time šafter impoundment, with the concurrence of the impounding agency šand district attorney. 7. Requires the DMV to notify all persons by certified mail, šreturn receipt requested, when a license is suspended or revoked, šand requires the DMV to use process servers for personal service šin certain cases if the certified mail is not delivered. The šDMV's costs are to be covered by license reissue fees authorized šby existing law. The bill requires the DMV to publicize the Safe šStreets Act when mailing driver's license and vehicle šregistration renewal notices, as well as with suspension and šrevocation notices. The bill requires suspended/revoked drivers to surrender all šdriver's licenses within 15 days of the effective date of a šlicense action. Persons who do not surrender licenses are šsubject to a reinstatement fee, which can be waived if the person šacknowledges a suspension/revocation and offers a reasonable šexplanation for not surrendering the license. 8. Allows any vehicle owner who suffers any loss due to šimpoundment or forfeiture to recover the amount of the loss from š AB 3148 (KATZ) Page 4 ________________________________________________________________ the responsible party. COMMENTS: 1. The intent of this bill is to curtail the driving of persons šwho are not licensed or who have had their licenses rescinded for šdriving violations. According to the author, the bill aims to šaccomplish this by making suspension and revocation notices more effective, by placing vehicle owners at risk of vehicle šforfeiture and by the actual act of forfeiture. The author notes that civil forfeiture is an in rem proceeding šthat relates to the illegal use of property, rather than the šillegal act of a person. Statutes may authorize forfeiture of šproperty used illegally, as in the case of a vehicle driven on šthe public highway by an unlicensed driver. Existing California šlaw already authorizes vehicle forfeiture in a limited number of šnuisance cases (Vehicle Code Section 23198). 2. According to the DMV, as many as 1 in 10 motorists, or up to š2,000,000 persons, drive in this state without a license. šUnlicensed drivers are reported as having five times as many šaccidents and 11 times as many drunk driving convictions as šlicensed drivers. Although unlicensed driving is a misdemeanor, šthe DMV and law enforcement agencies indicate that a large šmajority of persons with suspended or revoked licenses continue što drive. 3. The remedies proposed by this bill are formidable and involve ša number of substantial policy issues and due process šconsiderations, as indicated in the summary of the bill's šcontents. The bill has been double-referred to the Judiciary šCommittee if passed by this committee. Concerns or questions have been raised by a number of parties and šinclude: * How would a vehicle owner reasonably determine the validity šof another person's license? * Should a vehicle be forfeited without requiring a šconviction for the offense which gave cause for the original šimpoundment? * Should the impoundment hearing be conducted by the šimpounding agency when that agency stands to benefit from the šsale proceeds of forfeited vehicles? * Would the bill potentially harm co-owners of a vehicle when šthe law-abiding party is unable to control the driving šbehavior of the other owner? AB 3148 (KATZ) Page 5 ________________________________________________________________ * Is forfeiture of a vehicle too onerous a remedy or would šthe lengthy impoundment of a vehicle and its associated costs šand penalties serve the same ends? 4. SB 1758 (Kopp) also addresses the unlicensed driver problem šand was approved by the Senate earlier this year. The thrust of šSB 1758 is to increase penalties for such unlawful driving and šimpound vehicles used by unlicensed drivers for 30 days. The šbill was heard in the Judiciary Committee but not in this šcommittee. At some point, it appears that the two approaches šadvocated in SB 1758 and AB 3148 will have to be reconciled. One šmethod of effecting this would be through a conference committee šlater in the legislative process. Assembly Votes: Floor: 42-25 W&M: 13-7 Trans: 9-0 POSITIONS: (Communicated to the committee before noon on Wednesday, June 15, 1994.) SUPPORT: Advocates for Auto and Highway Safety Agents and Brokers Legislative Council Association of Los Angeles Deputy Sheriffs (ALADS) Butte County Sheriff's Department California Paralyzed Veterans Association Citizens for Reliable and Safe Highways (CRASH) City of Albany Police Department City of Barstow City of Coronado Police Department City of Chino Police Department City of Davis Police Department City of Dinuba Police Department City of El Monte Police Department City of Folsom Police Department City of Fountain Valley Police Department City of Hughson Police Department City of Indio Police Department City of Livermore Police Department City of Manteca Police Department City of Marysville Police Department City of Montclair Police Department City of Montebello Police Department City of Monterey Park Police Department City of Palm Springs Police Department City of Pleasant Hill Police Department City of Redondo Beach Police Department City of Ridgecrest Police Department AB 3148 (KATZ) Page 6 ________________________________________________________________ City of Rohnert Park, Department of Public Safety City of Roseville Police Department City of San Jacinto Police Department City of San Leandro Police Department City of Santa Ana Police Department City of Santa Rosa City of Scotts Valley Police Department City of Sierra Madre Police Department City of Tracy Police Department City of Turlock Police Services City of Vacaville Police Department Contra Costa County Sheriff-Coroner Disabled American Veterans, Van Nuys Chapter Grey Panthers of Berkeley Institute for Injury Reduction Livingston Police Department Los Angeles Police Protective League (LAPPL) Marathon Communications, Inc. Mothers Against Drunk Driving, California SUPPORT Continued: Municipal Court, South Orange County Judicial District National Council of Negro Women, San Fernando Valley Section North East Valley Residents Association Oceanside Police Department Placentia Police Department Planning and Conservation League El Proyecto del Barrio Sacramento Kings/ARCO Arena San Bernardino County Police Chiefs and Sheriff Assn. San Bernardino County Sheriff's Department San Mateo County Sheriff's Department Sonoma County Sheriff's Department Southern California Injury Prevention Research Center Stanislaus County Sheriff's Department Studio City Chamber of Commerce Suisun City Police Department Sunland-Tujunga Association of Residents Superior Court of Los Angeles County, Van Nuys Train Riders Association of California Town of Paradise Police Department Valley Industry and Commerce Association (VICA) Yuba County, Office of the Sheriff-Coroner OPPOSED: California State Automobile Association Automobile Club of Southern California AB 3148 (KATZ) Page 7 ________________________________________________________________ 06/15/94